Preferences and Willingness to Pay for Yogurt Product Attributes Among Urban Consumers in Kenya

Ateka, Josiah; Mbeche, Robert; Obebo, Forah; Sila, Daniel N.

doi:10.1080/08974438.2021.1902449

Cited by 5 publications

(4 citation statements)

References 23 publications

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“…Four different bid treatments were designed as shown in Table A1 in the Appendix. The treatments were randomly assigned to respondents during the actual data collection to avoid starting point bias (Ateka et al 2021a; Lusk & Hudson, 2004).…”

Section: Methodsmentioning

confidence: 99%

“…The empirical analysis of the potato farmers' WTP applied the double‐bounded version of the contingent valuation method which is preferred since it gives more efficient estimates compared with the single‐bounded approach (Hanemann et al, 1991; Lusk & Hudson, 2004). Under the approach, potato farmers were asked if they would be willing to pay an initial bid amount, and then a second follow‐up question, which depends on the response to the first bid (Ateka et al 2021a; Hanemann et al, 1991). Respondents who answered no to the initial bid were presented with a lower bid and vice versa.…”

Section: Methodsmentioning

confidence: 99%

“…The double‐bounded procedure asks respondents about a lower follow‐up bid

β_{i}^{L}

if the initial bid

()(, β_{i}^{N})

had been rejected or higher bid

β_{i}^{H}

if in the initial one had been accepted, such that

()(, β_{i}^{L} < β_{i}^{N} < β_{i}^{H})

. Based on its response, a respondent household's WTP could belong to one of the following four possible outcomes (Equations 6–9) following Verbeek (2012) and Ateka et al (2021a).

Accepts both bids : P ()(, π^{yy} / x_{i}) goodbreak= ()(, X^{'} β goodbreak+ μ \geq β_{i}^{H} / x_{i})

Accepts the initial bid but rejects the second bid : P ()(, π^{yn} / x_{i}) goodbreak= ()(, X^{'} β goodbreak+ μ < β_{i}^{H} / x_{i})

Rejects the initial bid but accepts the second bid P ()(, π^{ny} / x_{i}) goodbreak= ()(, X^{'} β goodbreak+ μ < β_{i}^{N} / x_{i})

Rejects both bids P ()(, π^{nn})

…”

Section: Methodsmentioning

confidence: 99%

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To sell or store? Assessing smallholder farmers' willingness to pay for potato cold storage in Kenya

Ateka

Mbeche

2022

Food and Energy Security

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Storage of food commodities for some time after harvest can play an important role in alleviating the downside of price fluctuations in developing countries.While storage can offer smallholder farmers substantial inter-temporal arbitrage opportunities, existing evidence shows that many farmers in developing countries store little of their harvest. Using a cross sectional survey of 502 households in Nyandarua and Bomet Counties of Kenya, this paper assessed smallholder farmers' willingness to pay (WTP) for cold storage and compares their WTP with the arbitrage opportunities. Our results reveal that the storage of potato was generally limited with only 26% storing in the season preceding the study. Using a hypothetical scenario with double-bounded contingent valuation formats, our findings show that a considerable proportion of households (70.7%) were willing to rent cold storage facilities. The WTP for storing a 90 kg bag of Shangi, a common variety with a short shelf life (1 month) was Kenya shillings (KES) 104 (1.16/ kg/month) compared KES 96.4 (1.07/kg/month) for the Unica variety (slightly longer shelf life). The probit model results show that gender (being female), and transaction costs associated with access to markets (e.g., geographical location and distance to the road) were positively associated with WTP. Furthermore, household endowment, reflected in household expenditure, income and level of potato commercialization had a positive influence on WTP to store. In addition, institutional characteristics of collective action, previous experience with storage and use of certified seed (often associated with extension) enhanced households WTP for potato storage. The results on potato prices over a 5-year period (2014)(2015)(2016)(2017)(2018)(2019) show that seasonal price gaps were higher than the estimated WTP, suggesting that potato storage could be economically viable. These findings have significant policy implications not only for commodities whose harvest is perishable and season bound (e.g., vegetables, fruits) where arbitrage may offer price stabilization.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

“…The double‐bounded procedure asks respondents about a lower follow‐up bid

β_{i}^{L}

if the initial bid

()(, β_{i}^{N})

had been rejected or higher bid

β_{i}^{H}

if in the initial one had been accepted, such that

()(, β_{i}^{L} < β_{i}^{N} < β_{i}^{H})

. Based on its response, a respondent household's WTP could belong to one of the following four possible outcomes (Equations 6–9) following Verbeek (2012) and Ateka et al (2021a).

Accepts both bids : P ()(, π^{yy} / x_{i}) goodbreak= ()(, X^{'} β goodbreak+ μ \geq β_{i}^{H} / x_{i})

Accepts the initial bid but rejects the second bid : P ()(, π^{yn} / x_{i}) goodbreak= ()(, X^{'} β goodbreak+ μ < β_{i}^{H} / x_{i})

Rejects the initial bid but accepts the second bid P ()(, π^{ny} / x_{i}) goodbreak= ()(, X^{'} β goodbreak+ μ < β_{i}^{N} / x_{i})

Rejects both bids P ()(, π^{nn})

…”

Section: Methodsmentioning

confidence: 99%

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To sell or store? Assessing smallholder farmers' willingness to pay for potato cold storage in Kenya

Ateka

Mbeche

2022

Food and Energy Security

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“…Yoghurt demand in Kenya is also increasing (Ateka et al, 2021). Consumption, however, like other packaged dairy products is limited to Kenya's urban centers (Chemweno, 2020).…”

Section: Introductionmentioning

confidence: 99%

Effectiveness of nutritional information in increasing demand for enriched yoghurt among poor households in Kenya: Implications for agribusiness marketing strategies

2022

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The yoghurt market represents one of the most dynamic consumer segments in Kenya's dairy industry. Product innovation like yoghurt enriched with nutrients is increasingly promoted to address the challenges of micro-nutrient deficiencies, especially among children and women of poor households.Using data from 383 in-household interviews in predominantly poor neighborhoods in Nairobi, we focus on evaluating features that can make this healthy product more desirable to increase demand and inform agribusiness marketing efforts.More specifically, we elicit preferences and willingness to pay (WTP) for health and nutrition-related yoghurt product attributes, and find that information connecting product enrichment to health can increase consumer desirability and consumer WTP.

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Examining the Intention of Greek Consumers to Purchase Functional Yoghurts: An Empirical Survey

Chatzoudes,

Ioakeimidou,

Chatzoglou

2024

Springer Proceedings in Business and Economics

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Preferences and Willingness to Pay for Yogurt Product Attributes Among Urban Consumers in Kenya

Cited by 5 publications

References 23 publications

To sell or store? Assessing smallholder farmers' willingness to pay for potato cold storage in Kenya

To sell or store? Assessing smallholder farmers' willingness to pay for potato cold storage in Kenya

Effectiveness of nutritional information in increasing demand for enriched yoghurt among poor households in Kenya: Implications for agribusiness marketing strategies

Examining the Intention of Greek Consumers to Purchase Functional Yoghurts: An Empirical Survey

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